Bring on inflation: Shark Tank's O'Leary

Pisani: Is complacency an issue?

Inflation is already baked into the stock market, so bring it on, investor Kevin O'Leary told CNBC's "Closing Bell" Tuesday.

"I like inflation. It gives corporations pricing power, which means higher earnings in the questionable fourth quarter," he said.

The consumer price index rose 0.4 percent in May from a month earlier, the biggest increase since February 2013. Economists had only expected consumer prices to rise 0.2 percent.

Read MoreWill whiff of inflation prod Fed?

Kevin O'Leary
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That data will be among other reports the Federal Reserve will evaluate at its two-day meeting, which began Tuesday. It is widely expected the central bank will continue tapering its bond-buying stimulus program by another $10 billion.

O'Leary, one of the stars of the reality show "Shark Tank," believes the market is ready for a full 25 basis point hit from the Federal Reserve, but he thinks the news from the meeting will be "benign."

However, he does see "inflationary tonality" in data points other than housing and wages.

Read MoreUS inflation gains in May as housing starts falter

He also thinks the 10-year Treasury yield will hit the 3 percent range by December.

—By CNBC's Michelle Fox, with Reuters